Venture studio ConsenSys is giving $175,000 to seven different open-source software projects on the ethereum network.
Announced on Oct. 10, these projects include a forward-looking ethereum software client called Lighthouse, an oracle network for off-chain data called Tellor and a mobile decentralized app-builder called Alice, among others.
About the new wave of grant recipients, ConsenSys Head of Experiential Marketing Yadira Blocker said:
“In Wave 1, we saw a lot of applications but they weren’t super strong. In Wave 2, we started to see more credible teams and more unique ideas come to the table.”
So far, the ConsenSys grants program, which launched in February 2019, has received over 150 applications, according to Blocker. Of those 150, 15 projects have been funded to the tune of $330,000 so far.
As announced in September, the third wave of ConsenSys grants is now open for applications with a remaining $220,000 left to give away.
ConsenSys marketing director Daniela Osorio says the purpose of the program is to support under-resourced areas of development that are integral to the ethereum ecosystem but not necessarily profitable.
“The way we find really great projects is we talk to VCs and we ask, ‘What are some great teams you’ve come across that you can’t actually justify funding?’” said Osorio, adding:
“It comes down to this theory of the ‘tragedy of the commons.’ We all need certain pieces to work for everyone else to build something potentially more profitable on top.”
ConsenSys-backed ethereum bounties network Gitcoin is currently experimenting with a novel form of grant distribution called Capital-constrained Liberal Radicalism (CLR) matching.
According to Gitcoin founder Kevin Owocki, CLR matching is the “mathematically optimal way to fund projects people care about.”
The basic idea is that the more individual contributions a project gets, the more money that project should receive from a dedicated grants fund. Using a special algorithm, Gitcoin is able to distribute grant money to match user donations in an impactful way.
Or, put another way: The more individual contributions that are made to a project, the higher the value of grant money that is distributed to that project.
On Oct. 2., Gitcoin concluded its third wave of CLR grant funding, which saw the distribution of $100,000 to 80 open source initiatives.
About the continuation of grant funding innovations, Osorio said:
“I don’t know if there’s ever enough money for people’s academic and research pursuits but I think there’s definitely a lot more community-driven efforts to address the notion and need for public goods funding.”
Joseph Lubin image via CoinDesk archives